rd fiera milano group · 2019-07-30 · conference call - 14 november 2017 . 2 contents highlights...
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FIERA MILANO GROUP 3rd Quarter 2017 Consolidated Results
www.fieramilano.it
CONFERENCE CALL - 14 NOVEMBER 2017
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CONTENTS
Highlights Financial result Business outlook
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HIGHLIGHTS
In the first nine months of 2017 results were in line with expectations despite some extraordinary
costs related to the reorganisation of the company governance
Revenues of Euro 186.9 million (Euro 178.9 million in the same period of 2016): the increase was
due to the presence of the international congress ERS and the different exhibition portfolio, partially
offset by a decrease in the stand-fittings business
Gross operating profit of Euro 2.7 million (Euro 14.6 million in the same period of 2016), affected
by the different exhibition calendar, some extraordinary costs and costs for the launch of new
proprietary exhibitions
The 3rd Quarter includes a structurally weak period for Fiera Milano and the exhibition business due to
the absence of activity in Italy in the summer months and the postponement of an important
exhibition
Net exhibition space occupied in Italy: 175,850 square metres (32% from directly organised
events) compared to 214,695 square metres in 3Q16
Revenues of Euro 45.1 million (Euro 40.3 million in 3Q16) increased mainly due to ERS, partially
offset by the postponement of an exhibition
Gross operating loss of Euro 10.8 million (a loss of Euro 6.6 million in 3Q16) mainly because of the
aforementioned postponement and lower margins from the stand-fitting business
Net operating loss of Euro 12.9 million (a loss of Euro 9.1 million in 3Q16)
On 28 September 2017, the Milan Court – Prevention Court Independent Section revoked the
Administration Order
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CONTENTS
Highlights Financial result Business outlook
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ITALIAN EXHIBITION CALENDAR
• Postponement of Lineapelle to the fourth quarter 2017 (46,875 net square meters in 3Q16)
Exhibitions 3Q16 3Q17
Directly organised 58,310 55,485
Organised by 3rd parties 147,550 105,630
Total annual exhibitions 205,860 161,115
Total exhibitions 205,860 161,115
Congresses with related exhibition area 8,835 14,735
Total 214,695 175,850
Net sq. metres
of exhibition space
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ITALIAN EXHIBITIONS
Gross of adjustments for inter-segment transactions
• The year-on-year decrease in quarterly revenues and
results mainly reflected the postponement of Lineapelle
• The year-on-year increase in revenues in the first nine
months reflected the contribution of new exhibitions; results
were affected by costs arising from the review of company
processes, costs for the launch of new proprietary
exhibitions and the repositioning of Bit
Italian exhibitions 3Q16 3Q17 9M16 9M17
Revenues (€'000) 31,733 25,961 146,076 148,209
Gross operating result (€'000) -6,575 -10,738 9,048 1,758
% on revenues -20.7% -41.4% 6.2% 1.2%
Net operating result (€'000) -7,983 -11,585 4,770 -1,909
% on revenues -25.2% -44.6% 3.3% -1.3%
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FOREIGN EXHIBITION CALENDAR
• China: Motor Show Chengdu
• South Africa: Good Food & Wine Show Gauteng
• Brazil: absence of the biennial exhibitions Fesqua and Feitintas
100% of the net exhibition space of the joint venture in China is included
Exhibitions 3Q16 3Q17
China 76,600 77,000
South Africa 3,490 3,850
India 1,200 2,075
Total annual exhibitions 81,290 82,925
Brazil 11,345 -
Total biennial exhibitions 11,345 -
Total 92,635 82,925
Net sq. metres
of exhibition space
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FOREIGN EXHIBITION
Gross of adjustments for inter-segment transactions
• The year-on-year decrease in quarterly revenues and
margins mainly reflected the less favourable exhibition
calendar in Brazil
• In the first nine months of the year, the year-on-year
increase in revenues was mainly due to the positive
performance of some exhibitions in Brazil, while the gross
operating result decreased due to higher personnel costs
Foreign exhibitions
3Q16
restated* 3Q17
9M16
restated* 9M17
Revenues (€'000) 1,570 465 3,623 4,085
Gross operating result (€'000) 151 -365 243 -70
% on revenues 9.6% -78.5% 6.7% -1.7%
Net operating result (€'000) -55 -726 -1,817 -758
% on revenues -3.5% -156.1% -50.2% -18.6%
* Some figures in the Consolidated Financial Statements at 30 September 2016 have been restated to reflect,
under IFRS 5, the sale of the Chinese companies, Worldex and Haikou Worldex finalised on 24 April 2017.
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STAND-FITTING SERVICES
• The year-on-year decrease in quarterly revenues was
primarily due to the aforementioned postponement of the
exhibition and lower activities; the gross operating result
was affected by extraordinary costs
• The year-on-year decrease in revenues and margins for the
first nine months of 2016 was attributable to lower revenues
from customised stand-fittings and non-exhibition contracts
present in 2016, as well as the absence of activities related
to Expo 2015
Gross of adjustments for inter-segment transactions
Stand-fitting services 3Q16 3Q17 9M16 9M17
Revenues (€'000) 7,687 6,566 33,970 25,197
Gross operating result (€'000) 670 -528 4,487 -151
% on revenues 8.7% -8.0% 13.2% -0.6%
Net operating result (€'000) 121 -988 3,193 -1,638
% on revenues 1.6% -15.0% 9.4% -6.5%
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MEDIA
Gross of adjustments for inter-segment transactions
• The year-on-year decrease in revenues for the quarter was
due to a reduction in sponsorship, print advertising and
billboard advertising; the gross operating result was in line
with the figure for the third quarter 2016
• In the first nine months of 2017 there was also a negative
impact on the revenues due to the different exhibition
calendar. The year-on-year change in the gross operating
result reflected lower revenues offset by lower personnel
costs and rental costs
Media 3Q16 3Q17 9M16 9M17
Revenues (€'000) 2,384 2,139 8,292 7,474
Gross operating result (€'000) -56 -58 211 -164
% on revenues -2.3% -2.7% 2.5% -2.2%
Net operating result (€'000) -137 -145 -787 -459
% on revenues -5.7% -6.8% -9.5% -6.1%
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CONGRESSES
• The year-on-year increase in quarterly revenues and
results reflected the presence of the ERS congress
• The year-on-year first nine month trend in revenues
reflected the quarterly change; the gross operating result
was reduced by a fall in other income which, in the previous
year, settlement of insurance claims
Gross of adjustments for inter-segment transactions
Congresses 3Q16 3Q17 9M16 9M17
Revenues (€'000) 5,464 18,082 20,859 34,315
Gross operating result (€'000) -619 877 737 1,316
% on revenues -11.3% 4.9% 3.5% 3.8%
Net operating result (€'000) -878 559 -43 330
% on revenues -16.1% 3.1% -0.2% 1.0%
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INCOME STATEMENT
Consolidated Income Statement (€'000)
3Q16
restated* 3Q17
9M16
restated* 9M17
Revenues 40,342 45,075 178,929 186,945
Gross operating result -6,562 -10,805 14,559 2,696
Gross operating margin (%) -16.3% -24.0% 8.1% 1.4%
Net operating result (EBIT) -9,078 -12,893 5,109 -4,475
Net operating margin (%) -22.5% -28.6% 2.9% -2.4%
Profit/loss before income tax from continuing operations -9,385 -13,015 4,693 -5,320
Profit/loss margin (%) -23.3% -28.9% 2.6% -2.8%
Profit/loss before income tax from discontinued operations 192 - -229 -
Profit/loss before income tax -9,193 -13,015 4,464 -5,320
Profit/loss before tax margin (%) -22.8% -28.9% 2.5% -2.8%
-attributable to Shareholders of the controlling entity -9,215 -13,365 4,625 -5,449
-attributable to non-controlling interests 22 350 -161 129
* Some figures in the Consolidated Financial Statements at 30 September 2016 have been restated to reflect, under IFRS 5, the sale of the Chinese companies,
Worldex and Haikou Worldex finalised on 24 April 2017.
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STATEMENT OF FINANCIAL POSITION
31/12/16
after tax Consolidated Statement of Financial Position (€'000)
30/06/17
after tax
30/09/17
before tax
160,882 Non-current assets 156,694 158,454
-46,527 Net working capital -70,600 -65,422
114,355 Gross capital employed 86,094 93,032
16,409 Non-current liabilities 14,581 14,236
97,946 Net capital employed from continuing operations 71,513 78,796
2,049 Net capital employed from discontinued operations - -
99,995 Total net capital employed 71,513 78,796
61,679 Equity 67,399 56,453
39,530 Net financial position from continuing operations 4,114 22,343
-1,214 Net financial position from assets held for sale - -
99,995 Equity and net financial position 71,513 78,796
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NET FINANCIAL POSITION
The increase in net debt compared to 30 June 2017 was due to the negative cash flow caused by the
absence of activity in summer months and the decrease in cash flows from working capital, mainly
attributable to the advance payment of the six-monthly rental charge; this was, in part, offset by the cash-
inflow received for exhibitions to be held in subsequent months
31/12/16 Consolidated Net Financial Position (€'000) 30/06/17 30/09/17
20,904 Cash (including bank balances) 28,062 20,294
- Other cash equivalents - -
- Securities held for trading - -
20,904 Cash & cash equivalents 28,062 20,294
2,622 Current financial assets 4,632 4,613
18,019 Current bank borrowings 6,465 22,598
27,523 Current portion of non-current debt 24,505 19,756
3,364 Other current financial liabilities 3,547 3,476
48,906 Current financial debt 34,517 45,830
25,380 Current net financial debt (cash) 1,823 20,923
14,108 Non-current bank borrowings 2,248 1,377
- Debt securities in issue - -
42 Other non-current payables 43 43
14,150 Non-current net financial debt 2,291 1,420
39,530 Net financial debt (cash) from continuing operations 4,114 22,343
-1,214 Net financial debt (cash) from assets held for sale - -
38,316 Net financial debt (cash) 4,114 22,343
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CONTENTS
Highlights Financial result Business outlook
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BUSINESS OUTLOOK
• The performance in the first nine months of 2017 was positive and in line with expectations.
The biennial exhibition Host, the leading professional hospitality exhibition worldwide, which was
held after the end of the quarter under review, reached another record with a 24% increase in
trade visitors; this figure reflects a generally improving trend
• Despite some extraordinary costs for consultancy fees linked to the restructuring of corporate
procedures and barring any currently unforeseen events or circumstances, the full-year forecast
is for a significant year-on-year improvement in the gross operating profit thanks to a more
favourable exhibition calendar in the fourth quarter
• The Company remains focused on identifying an optimum corporate strategy that, together
with its restructured and strengthened corporate governance, will ensure value creation for
all Company stakeholders
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FORWARD-LOOKING STATEMENTS
Data and information herewith set forth are extracted from Fiera Milano Consolidated Interim Management Report to 30 September 2017 filed with Italian authorities regulating exchanges and securities and disseminated concomitantly with this presentation.
This document has been prepared by Fiera Milano SpA solely for information purposes and for use in presentations of the Group. The information contained herein has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the company, its affiliates, or its representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document.
This document includes forward-looking statements. These forward-looking statements express current expectations and projections about future events, involve predictions and are subject to a number of factors that may influence the accuracy of the statements and the projections upon which the statements are based. Prospective investors are cautioned not to place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in many cases, beyond our control. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed in this document might not occur and no assurance can be given that the anticipated results will be achieved. Actual events or results may differ materially as a results of risks and uncertainties facing Fiera Milano and its subsidiaries. Such risks and uncertainties include, but are not limited to increased competition and regulatory, legislative and judicial developments that could cause actual results to vary materially from future results indicated, expressed or implied in such forward-looking statements. Moreover, any statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future.
This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
The Manager responsible for preparing the company’s financial reports Sebastiano Carbone declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this document corresponds to the document results, books and accounting records.
For further information, please contact:
Gianna La Rana Investor Relations Director
Camilla Cusi
Investor Relations
Tel +39 02.4997.7816/7911
email: [email protected]
Fiera Milano SpA S.S. del Sempione 28
20017 Rho (Milano) - Italia
www.fieramilano.it